Tejas Networks Shares Plunge 8%, Hit 52-Week Low as Q3 Loss Widens, Revenue Tanks 88% YoY
Tejas Networks is facing significant challenges as its shares fell dramatically, marking a new 52-week low. The company reported a disappointing financial performance for the December quarter, leading to a sharp decline in investor confidence.
– Stock Performance: Shares dropped 8%, settling at Rs 384.15 on the BSE, amidst selling pressure during early trading on Monday.
– Financial Overview: The company suffered a consolidated loss of Rs 196.55 crore for the October to December quarter, marking its second consecutive quarterly loss. In the same period last year, Tejas had recorded a profit of Rs 165.67 crore.
– Revenue Decline: Consolidated revenue from operations plummeted by approximately 88% year-on-year, reaching Rs 307 crore for the December 2025 quarter, down from about Rs 2,642 crore in December 2024. This stark drop can be largely attributed to deferred purchase orders from state-owned Bharat Sanchar Nigam Limited (BSNL).
– Market Dependence: Tejas Networks, a vital supplier for BSNL’s 4G rollout under the CDOT–TCS consortium, has positioned itself as one of the leading vendors of network routers. In the reported quarter, 85% of revenue came from domestic operations while the remaining 15% was sourced internationally.
– Inventory and Cash Position: The company reported holding inventory worth Rs 2,363 crore as of December 2025 and anticipates converting this inventory into finished goods for shipment in the upcoming months. Cash balances stood at Rs 537 crore, indicating some liquidity amid operational struggles.
– Future Prospects: Despite the challenging results, Tejas Networks has made strides in securing contracts for private 5G deployments across various sectors, such as ports and mining operations. It has also been appointed as the 5G radio network supplier along a section of the Delhi-Mumbai railway corridor as part of the Indian Railways’ Kavach pilot project.
– Production-Linked Incentive: The company received Rs 84.95 crore in production-linked incentives (PLI) for the March 2025 quarter, increasing total incentives under this scheme to Rs 397 crore.
In summary, Tejas Networks is currently navigating a tumultuous period, with its shares reaching a 52-week low amidst significant financial struggles. The company is counting on future contracts and market expansions to recover from recent setbacks. Investors will be watching closely to see how these factors play out in the coming quarters.